Use overdraft to pay off credit cards ?

revilo_oliver

Hello all i am new to this site, been reading lots of interesting posts on here so thought id ask you experts on my "dilemma " I have been bad in the past ( 6 years + ) but have no CCJ's or unpaid accounts , late payments etc
What i have outstanding
Vanquis bank - £650 outstanding £3000 limit
Capital One - £1400 £2000 limit
Barclaycard - £500 £1000 limit

I currently bank with Santander and have a proffered overdraft account with a £2250 overdraft facility i am in credit by £1500 and have approx £1000 a month expenses leaving £500 credit holiday maybe... lol

So do i go all out and max out my overdraft to avoid stupid intrest rates i have been paying for years ( i have been paying chunks of these cards for reference approx £1500 in the last 3 months off my vanquis card )

OR

I am thinking of applying for a 0% balance transfer and money supermarket have given me a 7/10 chance of getting a creation card and currently have a high fair rating on my experian online credit checker !

Sorry to ask so much so early on.

Tixy

What are the interest rates on your cards?

What interest rate or charges would you be charged by santander if you use your overdraft?

Assuming your vanquis is the highest APR I'd imagine it almost certainly worth clearing that from your bank balance and a proportion of your overdraft.

If you've not had any recent credit applications then it would be worth trying for the creation card, its easier to get than most 0% bt cards.

YorkshireBoy

Tixy wrote: »

What interest rate or charges would you be charged by santander if you use your overdraft?

Santander have a fixed daily charge for overdraft usage, so it's not proportional to the amount borrowed.

It'll be from 50p to £1 per day capped at 10-20 days per month, so borrowing as little as £1 could cost up to £20 per month.

And of course what will the OP do if Santander call in the overdraft?

It works well with my £10K facility that I have stoozed away offsetting my 3.75% mortgage, but I suspect it'll be very expensive for the OP with relatively small debts on their cards.

Assuming your vanquis is the highest APR I'd imagine it almost certainly worth clearing that from your bank balance and a proportion of your overdraft.

See above.

If you've not had any recent credit applications then it would be worth trying for the creation card, its easier to get than most 0% bt cards.

I agree.

revilo_oliver

your correct i have a cap of 10 days and at the moment its capped at £5 a month but as of next month it will be £10 per month, I have had the overdraft with them for years and rarely go massively in to it, vanquis is 39.9 % and capital one 34.9 % applied for creation got a 7-10 day message so i guess i will see what happens, i did get accepted a while back for £13000 new car with a prime finance company on a pcp so my credit scoring can't be that bad ( didnt take it in the end got a company car ) So im thinking if i don't get the card then to pay off £1000 off the cards so i will be in the black as it where for a little while whilst i pay it off...

revilo_oliver

Thanks for the advise guys applied for the creation card and got accepted with a 5k limit so goodbye horrendous apr ! got a small bonus from work which means vanquis is now paid off so i will only need to balance transfer barclaycard and capital one , it feels good to know that in the next few months i will be debt free 8 years after starting all this nonsense ! Great forum im getting addicted reading all the posts on here.

TheGenerus1

revilo_oliver wrote: »

Thanks for the advise guys applied for the creation card and got accepted with a 5k limit so goodbye horrendous apr ! got a small bonus from work which means vanquis is now paid off so i will only need to balance transfer barclaycard and capital one , it feels good to know that in the next few months i will be debt free 8 years after starting all this nonsense ! Great forum im getting addicted reading all the posts on here.

Which Creation card did you apply for? did they give you an instant decision?
What is your earning per year and how long did you have your subprime cards?

arabellaB

It would affect the interest rate.

revilo_oliver

i applied for the 17 month 0% balance transfer card, it was not instant took a few days for the email to come through , then i called them up to find out limit etc. i have had sub prime for a good 3/4 years now with balances in that time going up and down from 500-3000. I earn 30k per year